


	June 30, 2026		December 31, 2025
	(in thousands)
Land	$	172,614	$	172,614
Land improvements	5,595		5,595
Buildings and improvements	662,121		652,102
Furniture, fixtures, and equipment	20,371		19,702
Tenant improvements	23,121		24,832
Work in progress	16,725		18,631
Investments in real estate	900,547		893,476
Accumulated depreciation	(206,807)		(195,389)
Net investments in real estate	$	693,740	$	698,087

For the three months ended June 30, 2026 and 2025, the Company recorded depreciation expense of $6.6 million and $5.8 million, respectively. For the six months ended June 30, 2026 and 2025, the Company recorded depreciation expense of $13.5 million and $11.7 million, respectively.

Impairment—The Company performs quarterly impairment review procedures, primarily through continuous monitoring of events and changes in circumstances that could indicate that the carrying value of certain of its investments in real estate may not be recoverable. See Note 2 for a discussion of the Company’s accounting policies regarding impairment of investments in real estate. The Company recorded no impairment charges during the three and six months ended June 30, 2026.

During the three and six months ended June 30, 2025, one office property in Austin, Texas, with a carrying value of $2.1 million, was deemed to be impaired and its carrying value was reduced to an estimated fair value of $1.9 million, resulting in impairment charges of $221,000, which were recorded in the consolidated statement of operations.

See Note 13 for a further discussion regarding these impairment charges during the three and six months ended June 30, 2025.

Casualty Related Losses—During the three and six months ended June 30, 2026, the Company recorded a $992,000 reduction in the carrying value of the Company’s hotel as a result of water damage and recognized $537,000 of estimated insurance proceeds, for which recovery was deemed probable. As a result, the Company recognized a net casualty loss of $455,000, which is included within casualty loss, net on the accompanying consolidated statements of operations.

2026 and 2025 Transactions —There were no acquisitions or dispositions of investments in real estate during the six months ended June 30, 2026 and 2025.